Explore the complex world of M&A and trademark disputes in our latest blog post. Learn from the case of “Della Terra” and “Terra” trademarks and the legal actions that followed.
M&A Stories
November 6, 2023
Introduction:
In the world of M&A, trademarks are a valuable asset. However, even thorough due diligence might miss potential post-closing issues.
Background:
In 2017, a company started using the name “Della Terra” for a mountain-themed prototype trailer. After the buyer acquired the company’s assets in 2018, including the Della Terra trademark, they continued to use this branding.
The Controversy:
In November 2020, a competitor launched a Terra trailer with a similar mountain design. The buyer, in December 2020, asserted ownership of the Della Terra trademark and demanded the competitor stop using the Terra name.
Legal Actions:
The buyer registered the Della Terra mark in Indiana in August 2021 and applied for USPTO registration. This led to a lawsuit in a South Bend, Indiana federal district court. The court decided that the dispute should be resolved by a jury trial.
Key Findings:
The court determined that the jury must decide who has the right to use the brand names and designs, including “Della Terra” and “Terra,” and whether they can be legally protected. Many unresolved issues include who used the names first, the similarity of trademarks, potential consumer confusion, and the strength of the buyer’s trademark.
Implications:
This legal battle will be costly for the buyer, and it highlights the limitations of due diligence in uncovering trademark conflicts.
Case Reference:
Forest River, Inc. v. Intech Trailers, Inc. Cause No. 3:21-CV-645 DRL United States District Court, N.D. Indiana, South Bend Division (October 20, 2023).
By John McCauley: I write about recent legal problems of buyers and sellers of small businesses.
Email: jmccauley@mk-law.com
Profile: http://www.martindale.com/John-B-McCauley/176725-lawyer.htm
Telephone: 714 273-6291
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Check out my books: Buying Assets of a Small Business: Problems Taken From Recent Legal Battles and Selling Assets of a Small Business: Problems Taken From Recent Legal Battles
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